The crypto market has seen significant capital outflows as panic spread across the market over the past 24 hours. Jupiter (JUP) was not spared.
JUP, with a market capitalization of around $635 million, is down 13% during this period.
While there is a sentiment element to the decline, low on-chain activity also played a central role. Momentum indicators now suggest bears are taking control.
Why are Jupiter fees decreasing?
Jupiter’s fundamental image continued to weaken as key protocol parameters decreased further. Annualized fees, measured over a 30-day average, fell 29% to approximately $332 million at press time.
A decreasing fee reading generally signals lower protocol activity since fees come directly from transactions on the platform.
Daily active users followed the same trend, decreasing 19% over the past 30 days to 37,800 users. This contraction reflects lower engagement across the protocol and aligns with bearish sentiment around JUP.
Can JUP bounce from THIS support zone?
Despite the bearish setup, a rebound case has started to form near support.
JUP has been trading within a support zone that has triggered rallies several times over the past 57 days. This level also accumulated 870 million JUP in volume.
The last time JUP traded in this area, the asset was up 58%, showing strong buying interest at the same level.
Spot market data adds to this possibility. A negative net flow over the past two days showed that spot traders were net buyers during this period.
The net flow stood at $477,860, while the total spot purchase volume reached approximately $3.43 million.
If buying continues near this area, demand could help drive up the price of JUP. Nonetheless, the support reaction remains essential as momentum still weighs on the altcoin.
Are momentum indicators still bearish?
Momentum indicators continued to put pressure on JUP, with the Parabolic SAR and Money Flow Index pointing towards bearish control.
The Parabolic SAR formed above the price at press time. This usually signals increasing selling pressure and can lead to further declines.
The Money Flow Index also fell below the 50 mark, showing lower capital inflow into the market.
Until both indicators reverse, the JUP may remain exposed to further downward pressure. For now, buyers need a stronger supportive reaction to counter the bearish momentum.
Final Summary
- Jupiter (JUP) fell 13% over 24 hours as a broader market panic triggered large capital outflows.
- Annualized fees fell 29% to around $332 million, signaling lower transaction activity on the Jupiter protocol.
